Frasers Group has bought struggling department store chain Harvey Nichols through a pre-pack administration to further its luxury ambitions. The transaction, for an undisclosed sum, allows Frasers to acquire a slimmed-down business shorn of some liabilities.

Frasers will purchase six stores, including the Knightsbridge flagship in London, as well as online and international franchise businesses, taking on more than 1,000 employees. The deal excludes London’s OXO restaurant, which was sold to another buyer.

Under chief executive Michael Murray, Frasers—owner of Sports Direct—will add the lossmaking group to a portfolio including Flannels and House of Fraser. Murray stated that meaningful change and tough choices are needed to create a sustainable business for the long term.

The sale ends Sir Dickson Poon’s 35-year ownership. While Mike Ashley described the chain as being in a "death spiral," he believed it remained a good fit for the Frasers portfolio despite the challenges facing department stores from ecommerce and rising costs.